GameStop spikes another 91% as Reddit investors push stock to dizzying new highs
GameStopsoared 91% on Tuesday as retail traders continue to defy short-sellers.
- Short-sellers have amassed a mark-to-market loss of $5 billion in the stock year to date.
GameStop climbed another 91% on Tuesday as the
Shares of the video game retailer skyrocketed as much as 145% to record highs of $144.59 per share on Monday before cooler heads prevailed and the stock came down.
Despite the fall from record levels, Gamestop shares have gained over 300% in January alone.
The GameStop saga all started when the WallStreetBets subreddit rushed into
Since then, noted short-sellers like Citron Research have commented on the ludicrous nature of the jump and argued shares would fall back down to $20.
"The amount of people who are so passionate about putting GameStop higher not based on any fundamentals - it just shows the natural state of the market right now," Andrew Left, managing partner at Citron Research, said in a video.
The bearish news hasn't stopped shares from roaring higher.
As a result, short-sellers have amassed a mark-to-market loss of $5 billion in the stock year to date, according to data from S3 Partners. Still, despite increasing losses and a meteoric rise in share prices, short-sellers aren't backing down.
Over the last 30 days, GameStop's short interest has increased by 1.4 million shares.
Ihor Dusaniwsky, S3′s managing director of predictive analytics, explained the move to CNBC in an email, saying, "we are seeing a short-squeeze on older shorts who have incurred massive mark-to-market losses on their positions but are seeing new shorts coming in."
GameStop boasts two "buy" ratings, two "sell" ratings, and two "neutral" ratings from analysts with a median price target of $11.96 per share.
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